Board of Directors approves 2020 results 08-03-2021 17:52

Caltagirone Editore:

the Board of Directors approves 2020 results

• Revenues: Euro 119.9 million (Euro 135.9 million in 2019)
• Ebitda reached Euro 5.5 million (Euro 2.5 million in 2019)
• Group net loss of Euro 44.3 million after Euro 57.4 million intangible assets with indefinite life write-down (Euro -30.6 million in 2019 after Euro 39.8 million write- down)
• Digital activities increase. Internet advertising revenues up of 7.4% and daily unique users on the Group's websites up of 25%
• The Board of Directors has resolved to propose to the Shareholders' Meeting not to distribute any dividend

Rome, March 8th 2021 - The Board of Directors of Caltagirone Editore, chaired by Mr. Francesco Gianni, examined and approved the results originated by the analysis on the value of intangible assets, examined and approved the draft financial statements for the year ended December 31st, 2020.

The year was marked by a national scenario characterized by the spread of the Coronavirus and the adoption, by the national authorities, of the necessary containment measures that affected the general economic situation and consequently also the organization and the activities. The Group reacted promptly with the implementation of measures to guarantee the health and safety of its personnel and to be more efficient in terms of costs by reducing the economic effects connected to the decline in advertising and sales revenues.

Group Performance

Operating revenues reached Euro 119.9 million (Euro 135.9 million in 2019). Circulation revenues, included the sales of digital copies, reached Euro 53.3 million and decreased by 12.4% compared to previous year. The Group's advertising revenues were down by 12.5% compared to 2019 and reached Euro 60.7 million. Advertising sales on the internet, including advertising on behalf of third parties, increased by 7.4% and is now 24.4% of the total advertising revenues. The Total Audience (PC or mobile) of the Group's web sites recorded, on December 2020,

4.93 million unique average daily users and increased by 25% compared the same month of 2019.

Ebitda reached Euro 5.5 million (Euro 2.5 million in 2019). The costs for personnel, including non-recurring charges that amounts to Euro 4.2 million (Euro 3.2 million in 2019) linked to the reorganization processes put in action by some subsidiaries, decreased by 7.1% compared to 2019. Excluding such non-recurring costs, the

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costs for personnel decreased by 9.4%. The other Operating Costs decreased by 17.3% due to the actions taken in the Group reorganization process that have enabled cost savings, particularly in service costs. The cost of raw materials also decreased by 33.1% compared to 2019, mainly due to the lower quantities used in the production process and to the reduction in the price of paper.

Ebit recorded a loss of Euro 59.6 million (Euro -45.6 million as of December 2019) after the intangible impairment charge of Euro 57.4 million (Euro 39.8 million in 2019) amortizations of Euro 6.7 million (Euro 6.3 million of 2019), provisions of Euro 118 thousand (Euro 1.3 million as of 2019) and depreciations for Euro 914 thousand (Euro 691 thousand as of 2019).

Net financial result reached Euro 2.9 million (Euro 5.1 million as of December 31st 2019) and includes dividends received on listed shares net of financial charges connected to operational needs.

Group net loss reached Euro 44.3 million (loss of Euro 30.6 million in 2019).

Net financial position reached Euro 86 million and decreased by Euro 7.8 million (Euro 93.4 million as of December 31th, 2019) as a result of investments in listed shares net of dividends collected and positive cash flow.

Consolidated Group Shareholders' Equity reached Euro 339.3 million (Euro 408.2 million on December 31st 2019). The decrease is mainly due to the negative result of the year and to the negative effect in the fair value valuation of the equity investments held.

At December 31st 2020 the Group employed 596 people (611 at December 31st 2019).

The Board of Directors has resolved to propose to the Shareholders' Meeting not to distribute any dividend.

The Ordinary Shareholders' Meeting is convened at the Company's registered office on first call, for April 26st, 2021 and on second call on May the 5th, 2021 to approve the financial statements at December 31st, 2020, the renewal of the Board of Directors and of the Board of Statutory Auditors for the three-year period 2021 - 2022 and 2023 and the remuneration report.

The Board of Directors has approved the Report on corporate governance pursuant to Art. 123-bis of Legislative Decree n. 58/1998 as well as the Remuneration Report pursuant to art. 123-ter of Legislative Decree n. 58/1998 and article 84-quater of the Issuers Regulation, which will be made available, together with the Annual Report 2020, in the time required by law at the registered office, on the Company website

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of www.caltagironeeditore.com in the Investors section, and on the storage mechanism authorized operated by Spafid Connect Spa at www.emarketstorage.com.

The Board of Directors confirmed that the Chief of Directors Francesco Gianni and the Directors Massimo Confortini, Annamaria Malato, Valeria Ninfadoro and Giacomo Scribani Rossi are Independent Directors according to the provisions contained in the Legislative Decree n. 58 of February 24th, 1998.

Outlook

In order to mitigate the negative impacts of the Covid-19 emergency on economic, equity and financial results, the Company will continue to implement measures aimed at containing all discretionary costs and structurally reducing direct and operating costs.

Fabrizio Caprara, as the Executive responsible for preparing the Company's financial reports, declares in accordance with article 154 bis, paragraph 2, of the "Testo Unico della Finanza", that the accounting information contained in this press release corresponds to the underlying documents, records and accounting entries.

Enclosed the financial statements, currently being examined by the independent audit firm and by the Board of Statutory Auditors.

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CALTAGIRONE EDITORE GROUP

CONSOLIDATED BALANCE SHEET

Assets
(in Euro thousands)	31.12.2020	31.12.2019
Non-current assets
Intangible assets with definite life	866	809
Intangible assets with indefinite life	103,003	160,403
Newspaper titles	103,003	160,403
Property, plant and equipment	40,419	44,808
Equity investments and non-current securities	108,159	120,777
Other non-current assets	135	89
Deferred tax assets	53,389	53,616
TOTAL NON-CURRENT ASSETS	305,971	380,502
Current assets
Inventories	1,592	1,651
Trade receivables	41,031	42,849
of which related parties	208	123
Other current assets	1,024	804
Cash and cash equivalents	100,496	112,368
TOTAL CURRENT ASSETS	144,184	157,672
TOTAL ASSETS	450,155	538,174

CALTAGIRONE EDITORE GROUP

CONSOLIDATED BALANCE SHEET

SHAREHOLDERS' EQUITY AND
LIABILITIES
(in Euro thousands)	31.12.2020	31.12.2019
Shareholders' Equity
Share capital	125,000	125,000
Share capital issue costs	(18,865)	(18,865)
Other reserves	277,411	332,724
Profit/(loss) for the year	(44,277)	(30,649)
Group shareholders' equity	339,269	408,210
Minority interest shareholders' equity	-	-
TOTAL SHAREHOLDERS' EQUITY	339,269	408,210
LIABILITIES
Non-current liabilities
Employee provisions	14,802	15,405
Other non-current provisions	155	232
Non-current financial liabilities	3,562	5,700
of which related parties	1,936	4,915
Other non-current liabilities	1,859	1,630
Deferred tax liabilities	27,548	40,986
TOTAL NON-CURRENT LIABILITIES	47,926	63,953
Current liabilities
Current provisions	11,769	10,938
Trade payables	19,647	21,284
of which related parties	248	1,698
Current financial liabilities	10,916	12,892
of which related parties	2,783	2,909
Tax payables	0	28
Other current liabilities	20,628	20,869
of which related parties	33	36
TOTAL CURRENT LIABILITIES	62,960	66,011
TOTAL LIABILITIES	110,886	129,964
TOTAL SHAREHOLDERS' EQUITY AND	450,155	538,174
LIABILITIES